HomeMy WebLinkAbout06 AUTH TO PURCHASE BACKHOE/LOADER 09-02-08Agenda Item 6
-- - ' /~ ~T /~ p Reviewed:
1-1~j~1 r ~1-1 ~1 O~~ City Manager
Finance Director
MEETING DATE: SEPTEMBER 2, 2008
TO: WILLIAM A. HUSTON, CITY MANAGER
FROM: PUBLIC WORKS DEPARTMENT/FIELD SERVICES DIVISION
SUBJECT: AUTHORIZATION FOR THE STATE TO PURCHASE ONE JOHN DEERE
BACKHOE/LOADER
SUMMARY
Approval of Resolution No. 08-61 will authorize the General Services Department of the
State of California to purchase one current model year John Deere backhoe/loader on
behalf of the City of Tustin.
RECOMMENDATION
It is recommended that the City Council approve Resolution No. 08-61 authorizing the
General Services Department of the State of California to purchase one current model
year John Deere backhoe/loader on behalf of the City of Tustin.
FISCAL IMPACT
Adequate funds are budgeted and available in the Lease Fund (Account # 84-801-9740)
for the replacement of one backhoe/loader. The total cost, including all discounts, options,
delivery, taxes, and applicable fees, is $89,474.82.
BACKGROUND
The Field Service Division has a 1984 backhoe/loader (Unit #5650) which requires major
repairs at an estimated cost greater than its present value. This unit is scheduled for
replacement in this fiscal year. The Water Division has a 2001 backhoe (Unit #7050) that
is scheduled to be replaced in FY 2009/10. Staff evaluated both units and recommends
the purchase of a new unit for the Water Division and the reassignment of the Division's
old unit to Field Services. In turn, Field Services will surplus its old unit from fleet. This
purchase and exchange of existing resources within the Department's fleet saves money
and more effectively utilizes equipment among the Divisions.
DISCUSSION
Each year the state bids and awards vehicles and equipment contracts to various
dealerships throughout the state. Since the state buys in large volume they are able to
receive a more competitive price for vehicles and equipment than the City. Staff reviewed
the prices obtained from state contracted dealers. All dealers had the same price on the
base model backhoe/loader, but different prices on the optional equipment not under
contract. The prices listed below include all discounts, options, delivery, taxes and
applicable fees for the model recommended for purchase.
Authorization for the State to Purchase one John Deere Backhoe/Loader
September 2, 2008
Page 2
State Total
Vendor Contract Cost
Coastline Equipment * YES $ 89,481.73
Pape Machinery * YES $ 90,282.46
Ordo Equipment * YES $ 94,185.00
* State Contract pricing includes 2.27% contract use fee and a 39% discount from
the Manufacture Suggested Retail Price.
As a result, the most cost-effective option for the City is to purchase the new
backhoe/loader through the General Services Department of the State of California at a
total cost of $89,481.73 from Coastline Equipment, Long Beach, CA.
Approval of the attached resolution allows the City to utilize the State's purchasing
program to obtain one backhoe/loader as specified at a substantially lower cost than the
City can obtain on its own. It also designates the City Manager as the public official
authorized to execute this request on behalf of the City.
-~ ~ d
Tim D. Serlet W~sa It aiji
Director of Public Works/City Engineer Fi services Manager
Attachment: Resolution No. 08-61
TDS: WA: ccg: Authorization state to purchase John Deere backhoe & Reso. 08-61.doc
RESOLUTION NO. 08-61
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN,
CALIFORNIA AUTHORIZING THE DEPARTMENT OF GENERAL SERVICES
OF THE STATE OF CALIFORNIA TO PURCHASE CERTAIN ITEMS.
WHEREAS, the City has need to purchase various material, supplies and
equipment in order to conduct the operations of the City; and
WHEREAS, Section 1624, Item C of the Tustin Municipal Code authorizes the
State of California to purchase materials, supplies, and equipment if it can be acquired
more economically or efficiently by the State;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Tustin, California, does hereby authorize the Procurement Division, Department of
General Services of the State of California, to purchase one current model year John
Deere Backhoe/Loader for and on behalf of the City of Tustin pursuant to Section 10324
of the California Public Contract Code, and that Mr. William A. Huston, City Manager, is
hereby directed to sign and deliver all necessary requests and other documents in
connection therewith and for and on behalf of the City of Tustin.
PASSED AND ADOPTED at a regular meeting of the Tustin City Council on the
2~d day of September 2008.
Jerry Amante, Mayor
ATTEST:
City Clerk